Ilam Fahari I-Reit has completed paying a section of former owners of Greenspan Mall who sued the listed property fund for failing to remit the undisclosed cash years after they signed the sale agreement in July 2015.
The Nairobi Securities Exchange-listed fund has disclosed in its latest annual report that a dispute with the group of 13 investors was settled last month.
Fahari acquired 100 percent of Greenspan Mall and vacant land in Nairobi’s Donholm at a cost of Sh2 billion, part of which was not paid when the parties signed the deal.
“The Reit appointed the firm of Coulson Harney LLP (Bowmans) to represent it in the arbitration matter where thirteen former shareholders of Greenspan Mall Limited are claiming compensation from the Reit Trustee for loss and damages suffered as a result of failure by the trustee to release the balance of the purchase price on completion date,” Fahari says in its latest annual report.
“Greenspan Mall Limited, through Bowmans, has filed their statement of response, witness statements and list of issues. The hearing took place on 1st February 2023. The matter was marked for mention on 16th March 2023 to confirm compliance.”
A share purchase agreement was executed between Stanlib Kenya (the former manager of the Reit) and the vendors on July 1, 2015. The Reit is now managed by ICEA Lion Asset Management Limited which had not responded to our queries by the time of going to press.
The deal gave Fahari 100 percent of the total issued share capital in Greenspan Mall Limited, which is the holder of title of the Greenspan Mall property.
Fahari says it is considering developing part of the Greenspan Mall vacant land, subject to a review of the commercial viability of the proposed project.
“A property development project utilising part of the vacant land at Greenspan Mall is currently being evaluated. If considered viable, the project will be implemented,” Fahari said.
The fund is also seeking to sell two buildings valued at Sh200.4 million as part of its plans to sell non-core assets and restructure its operations.
The Reit says that it has started the process of selling Highway House –a three-storey industrial building off Mombasa Road in Nairobi. The property is vacant after the expiry of the lease of the former tenant.
Fahari is also looking for a buyer of Bay Holdings, a building that is fully leased to Imperial Bank, Packard Limited and Architecture Supply Limited.
“Accordingly, the properties are presented as an asset held for sale,” Fahari says in the report.
